[Edaily Reporter Shin Ha-yeon ] “In the era of glucagon-like peptide-1 (GLP-1), we have focused on maintaining muscle mass during weight management and weight loss. To this end, we are developing ingredients for weight management and plant-based proteins derived from soybeans. Both of these ingredients are based on the traditional fermentation technologies we have accumulated over the years.”

Jeong Yong-jin, CEO of #KM CORPORATION (KMF), recently outlined this growth strategy in an interview with E-Daily following the company’s listing on KOSDAQ. With the growing popularity of GLP-1-based obesity treatments such as Wegovy and Mounjaro, he anticipates increased demand for foods designed to supplement protein intake during weight loss and help maintain weight after losing it. KM CORPORATION, which has grown through grain enzyme production, plans to mass-produce these new materials at its second plant in Gyeongsan, North Gyeongsang Province, and is working with local distributors in the U.S. and China to bring the products to market.

CEO Jeong Yong-jin holds a Ph.D. in fermentation engineering and served as a professor in the Department of Food Processing at Keimyung University for over 26 years. He founded KM CORPORATION in 2002 while still a professor, inspired by his research on the manufacturing process for persimmon vinegar. The research experience he gained at the university also led to collaborations with major corporations. While serving as a consultant for DOOSAN’s soju products, he drew inspiration from the side dishes typically eaten with soju and proposed the concept of “Cheo-eum-cheoreom,” an alkaline soju. Research he began out of a desire to provide his young children with preservative-free beverages also resulted in commercial products. CEO Jeong recalled, “Around 1996, we commercialized Korea’s first preservative-free beverage,” adding, “That achievement led to a long-term partnership with CJ Corp.” He explained that the manufacturing technology developed at that time was later applied to the hangover relief drink “Condition.”

These experiences laid the foundation for KM CORPORATION to grow its Original Design Manufacturer (ODM) business, in which the company jointly develops ingredients with clients and handles production. Following the commercialization of enzyme products utilizing ancient grains such as kamut and farro, the company expanded its product lineup to include kombucha and apple cider vinegar.

“DTS 819,” the core ingredient for this new business, utilizes short-chain fatty acids obtained by fermenting plant-based raw materials with microorganisms. Short-chain fatty acids are also produced when gut microbes ferment dietary fiber. To deliver this ingredient to the intestines, KM CORPORATION applied a Target Delivery System (TDS). The short-chain fatty acids are encapsulated in a carrier with microscopic pores and coated with an enteric coating to protect them from stomach acid and digestive enzymes, ensuring they are released in the intestines.

The company focused on the fact that when short-chain fatty acids stimulate cells in the intestines, they can trigger the secretion of GLP-1, a hormone involved in regulating satiety. The concept is to induce the body to secrete GLP-1 using short-chain fatty acids delivered to the intestines, thereby increasing satiety and helping to regulate food intake. CEO Jeong likened this development direction to a “natural Wegovy.” While Wegovy is a pharmaceutical drug whose active ingredient acts similarly to GLP-1, DTS 819 is a food ingredient inspired by the body’s natural GLP-1 secretion process.

Another new ingredient is derived from fermented soybeans that have been enzymatically processed to break down plant-based protein into small peptides. It is aimed at consumers seeking to supplement their protein intake and maintain muscle mass during weight loss. The company plans to conduct a clinical trial of this new ingredient in South Korea with approximately 60 participants around February of next year. CEO Jeong explained, “We are in the process of collecting data on how indicators such as body fat and muscle mass change, along with assessing dietary compliance.”

The existing Daegu plant is already operating at full capacity just to meet orders for its flagship enzyme products. The Gyeongsan Plant No. 2, which will produce the two new materials, is scheduled to begin trial operations this December, with the goal of starting full-scale production around March of next year. For overseas markets, KM CORPORATION is planning a model where it handles the core formulation and production, while local distributors launch the products. CEO Jeong stated, “Rather than selling raw materials to the general public, we are looking for companies to become our strategic partners,” citing the U.S. and China as priority target markets.

KM CORPORATION expects to maintain high profitability even as it expands its production scale. Last year, revenue totaled 25.751 billion won, with an operating profit of 14.369 billion won, resulting in an operating profit margin of 55.8%. In the first half of this year, revenue rose 31.1% year-over-year to 13.714 billion won, and the operating profit margin remained in the 50% range at 51.9%.

CEO Jeong cited the fact that he personally designed the fermentation facilities and engineered them to produce multiple materials from a single unit as the key to maintaining high profitability. He explained that this allows the company to adjust production volumes according to demand for each product, thereby increasing equipment utilization rates and reducing fixed costs per unit. He said, “Fermentation has relatively high barriers to entry because results are initially inconsistent and it’s difficult to find the optimal ratio, but once know-how is accumulated (as in our case) and the process stabilizes to a certain extent, production costs begin to fall.” He went on to emphasize, “I want to build a bio-platform company that represents Korea, based on traditional fermentation.”

Meanwhile, KM CORPORATION is offering 2 million new shares for a KOSDAQ listing. The target offering price ranges from 15,000 to 17,800 won per share, with the expected proceeds totaling between 30 billion and 35.6 billion won. The company will conduct a bookbuilding process for institutional investors from the 16th to the 20th and accept public subscriptions on the 24th and 25th. IBK Investment & Securities is serving as the lead underwriter.